As President Trump and Speaker Paul Ryan never tire of asserting, the main economic lever in the Republican plan is the cut in the corporate tax rate from 35% to 20%. That will increase the after-tax profits of corporations which typically pass along their earnings to Wall Street and wealthy investors.
How did we get to the place where business is a bad thing? When did corporations or even the 1% become our enemy? Ever since the Great Recession the left’s drumbeat has been anti business and wealth and pro equality (whatever that means).
Does anyone seriously believe we can exist without thriving businesses, growing profits, dividends and stock prices? So what if a CEO gets a $10 million stock award; what does that take from you?
My favorite sentence from the above quote is “That will increase the after-tax profits of corporations which typically pass along their earnings to Wall Street and wealthy investors.” Yup, that’s it, corporations pass along some of their profits to their shareholders large and small. In fact, it’s not possible to pass along profits just to wealthy investors.
It’s called capitalism and that process has served America very well for centuries. Even today as we seem to stumble a bit America’s lower-income, even poor are well off by world standards. The notion that only “Wall Street” and wealthy investors benefit from growing profits is misleading and harmful liberal rhetoric, rhetoric that is blindly accepted by too many Americans.
According to a 2013 Goldman Sachs report, the total effective household ownership (in US equity markets) is closer to 80 percent when combined with indirect ownership in the form of mutual funds (20 percent), pension funds (16 percent), and insurance policy holdings (7 percent).” In other words, there are very few Americans who do not benefit from growing corporate profits. We should all encourage corporations to pass along profits to their investors … and if you don’t have a piece of that pie, why not?
Stop swallowing the anti-everything that stimulates fiscal America Kool aid from the political left. Even their dreams for society can’t be achieved without growing profits and “wealthy” (1) taxpayers to foot the bills.
If you are on the sidelines, get in the game. Think of one non-necessity you spend money on and divert that money to investing. Everyone has that opportunity.
(1) That’s a household income around $100,000 by the way.